Media Statement - 3rd December 2007
Opposition leader Brendan Nelson this morning failed the first economic test of his leadership when he didn’t know what the current Reserve Bank cash rate was.
Dr Nelson’s gaffe shows he does not have a good grasp of the fundamentals of economic management and is out of touch with the pressures on working families.
This morning on the ABCs Insiders programme Dr Nelson stated that the cash rate was 7.5 percent – in fact it is 6.75 percent.
BARRIE CASSIDY: But the key is that is that you weren't telling the truth. You had in fact voted Liberal, and I think you've confirmed since, you voted Liberal in 1987, in 1990, and in fact, you voted Liberal four days after telling that rally you have never voted Liberal in your life?
BRENDAN NELSON: Well, look, I've been over all this stuff in the past. Look, the key thing for us now, the key thing is the average Australian knows that they have a Rudd Labor Government supported by Julia Gillard as the Deputy Prime Minister. They know that today the price of bread is around $2.30, $2.40, petrol, I filled up this morning, $1.39, they know the cash rate's at 7.5 per cent, they also know that the inflation rate is at relatively low levels, and their kids today are able to get a job. They're the kind of key indicators that Mr Rudd will be judged against that I will be holding him up to.Dr Nelson’s statement that inflation is low also demonstrates he does not understand the seriousness of the inflation challenge.
The Reserve Bank repeatedly warned the previous government about capacity constraints putting upward pressure on inflation and interest rates.
They were not listening then, and they are still not listening now.